International Trade & Commerce

EGYPTIAN POTATO EXPORTS OVERCOME CLIMATE CHALLENGES, FIND SUCCESS IN EUROPE.

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The potato industry has been significantly affected by global climate changes, causing disruptions in production worldwide. However, amidst these challenges, Egypt has emerged as a resilient player, demonstrating remarkable strength compared to its European counterparts. This success has translated into an expanded market reach, particularly in Spain.

During a mid-January cold snap, Egypt faced phytosanitary issues that impacted potato volumes and sizes, primarily in coastal regions. This climatic phenomenon, referred to as “Nadwa,” resulted in reduced yields due to nutritional deficiencies during the flowering stage, albeit to a lesser extent than in regions like France which suffered severe drought conditions.

While coastal regions experienced challenges, Egypt’s desert regions, recently reclaimed for potato cultivation, boasted stable and favourable yields, ensuring a consistent supply. However, the increased production costs incurred by coastal areas, compounded by fluctuations in the US dollar exchange rate, led to substantial losses for some.

Leveraging its favourable production calendar, which does not overlap with major suppliers like the Netherlands, Egypt seized the opportunity to expand its presence in markets such as Poland, Slovenia, Belgium, Spain, and Italy. The drought in France compelled Spain and France to turn to Egypt for potato imports, providing new avenues for Egyptian exporters to flourish. Notably, the positive feedback from Spanish customers has enhanced market recognition and customer satisfaction for Egyptian potatoes.

While the pre-season witnessed competitive prices due to increased competition among Egyptian exporters, rising demand and production costs led to a subsequent surge in prices. As a result, Russia reduced its demand due to unfavourable pricing.

Looking ahead, Egyptian exporters remain optimistic about the future of their potato exports. With a strong commitment to stringent sorting and selection processes to ensure the export of high-quality potatoes, they are also responsive to customer demands, including the introduction of new varieties like Annabelle.

In summary, Egypt’s potato industry has navigated the challenges posed by global climate changes, capitalizing on new market opportunities. Demonstrating resilience and adaptability, Egypt continues to solidify its position as a reliable and competitive potato exporter on the global stage, with a focus on delivering high-quality products to meet evolving market demands.

Source:freshplaza, Photo https://www.pexels.com/photo/yellow-potatoes-in-close-up-photography-12191408/

17 May 2023

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